Explain how the following will affect the supply curve of coffee
a) A fall in the wages paid to coffee workers
b) An increase in the availability of high-yielding coffee plants
c) A decrease in the quantity of land under coffee cultivation
What will be an ideal response?
a) A fall in wages paid to workers will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
b) An increase in the availability of high-yielding coffee plants will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
c) A decrease in the quantity of land under coffee cultivation will shift the supply curve of coffee to the left. This implies a decrease in the supply of coffee.
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In the short run, a perfectly competitive firm can experience which of the following?
i. an economic profit ii. an economic loss but it continues to stay open iii. an economic loss equal to its total fixed cost when it shuts down A) only i B) i and ii C) i and iii D) ii and iii E) i, ii, and iii
Which of the following is true?
A) If a majority of voters favor a proposal, it will achieve positive results. B) If there is an economic problem, the government will be able to solve it. C) A good outcome is guaranteed when a government program is created with good intentions. D) Even if government programs are implemented with good intentions, they may lead to undesirable outcomes.